Faceless assessment challenge shifted to statutory appeal as disputed additions and recovery stay issues were not fit for writ review.

Faceless assessment challenges based on disputed additions to returned income were held unsuitable for writ jurisdiction where statutory appellate remedy remained available. The assessment followed notices under Section 142(1) and a draft assessment notice, but the taxpayer did not submit a proper reply to the show-cause notice cum draft assessment order. The Court held that such disputed factual issues should be pursued in appeal, and the taxpayer may also seek stay of recovery under the applicable provisions, with recovery kept in abeyance pending that application.

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Issues: Whether the writ petition challenging the assessment order was maintainable in view of the statutory appellate remedy, and whether the petitioner should be relegated to the appellate forum with liberty to seek stay of recovery.

Analysis: The assessment order was passed under the faceless assessment framework after notices under Section 142(1) of the Income-tax Act, 1961 and the petitioner had also been given an opportunity to respond to the draft assessment notice. The Court found that the petitioner did not furnish a proper reply to the show-cause notice cum draft assessment order and that the disputed questions arising from the addition made to the returned income could not be decided in writ jurisdiction. It noted that the proper course was to pursue the statutory appeal and that the petitioner could also seek stay of recovery under the applicable provisions.

Outcome: The writ petition was disposed of with liberty to file a statutory appeal and to seek stay of recovery, with recovery proceedings to remain in abeyance pending such application.

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